U.S. Inflation Data Signals Possible Federal Rate Cuts

2 mins mins

Key Points:

U.S. inflation data prompts speculation on Federal Reserve rate cuts.
Data showed lower-than-expected year-on-year inflation rates.
Effects expected on risk assets including cryptocurrencies.

The U.S. Commerce Department’s report, delayed by a government shutdown, showed September’s inflation rate was lower than expected, suggesting a potential Federal Reserve interest rate cut.

Lower inflation strengthens the likelihood of a Federal Reserve rate cut, positively affecting Bitcoin (BTC) and Ethereum (ETH), and supporting overall crypto market liquidity and sentiment.

U.S. Inflation Data Signals Possible Federal Rate Cuts

The U.S. Commerce Department released September inflation data indicating a 0.2% rise month-on-month and a 2.8% year-on-year rate. The year-on-year figure fell 0.1 percentage points below expectations, increasing speculation on interest rate adjustments.

In recent years, lower-than-expected inflation prints have often led to short-term price gains in Bitcoin and Ethereum, reflecting changes in investor sentiment shaped by Federal Reserve monetary policy speculation.

Bitcoin’s current price as of December 5, 2025, is $91,268.25, with a market cap of $1.82 trillion. It holds a 58.69% market dominance. Over the past 24 hours, its price dropped by 1.36%, while the 7-day change registered a 1.50% decline. Data sourced from CoinMarketCap.

Cryptocurrency and Market Impacts from Fed Decisions

Did you know? Historical trends suggest shifts in investment strategies aligned with Federal Reserve decisions, affecting liquidity and market stability.

The Coincu research team emphasizes the potential influence of inflation data on monetary policy and cryptocurrency market conditions.

bitcoin-daily-chart-4755 — Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 15:31 UTC on December 5, 2025. *Source: CoinMarketCap*

Market analysts and financial commentators are closely monitoring these developments, as they influence broader sentiment within risk assets, including cryptocurrencies.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.